Bill adopted to clarify impact of pensions shift

The government on Wednesday adopted a package of bills designed to clarify the impact of switching from a private to a state-managed pension scheme.

The bill will "save pensions", for pensioners and future pensioners, as well as people currently in the private system, Péter Szijjártó, the prime minister's spokesman, told reporters.

The Economy Minister György Matolcsy told the press on Wednesday that members who currently pay their compulsory contributions into private pension funds must decide by January 31, 2011, if they want to switch to the state system. Those who remain in the private system will not receive "solidarity payments" from employers' contributions, he said.

Szijjarto said the new legislation would ensure that accrued savings in private pension funds are transferred to the state system with earlier yields added. Employees switching to the state pension system by the end of January next year will even be granted yields offered by the state system in past years if their private fund was loss-making, Szijjártó said."This package will have benefits for all," he added.

As for pensioners already receiving state pensions, Szijjártó said their pensions would be guaranteed by making sure that pension funds can only be used to finance pension payments.